Hot Temps And High Bills: Behind The Summertime Electric Price Hikes

Anne Arundel County residents’ wallets may have felt lighter over the past two months due to abnormally high electricity bills. Baltimore Gas and Electric (BGE), the main Maryland energy supplier, released a statement in May warning customers of increased electricity prices starting June 1. Since then, electric bills have grown, raising the cost of living and making it more expensive to stay cool this summer.

The reasons for the price increases vary but are mainly due to Maryland power plant closures, outdated electricity infrastructure, and the strain of new data centers.

Anne Arundel County fossil fuel power plants Brandon Shores and H.A. Wagner are scheduled for closure in 2028. They were both scheduled for closure in 2023, but PJM Interconnection LLC (PJM), the largest power grid operator in the United States, ordered the plants to stay open until 2028. This is due to Maryland’s electrical infrastructure, which cannot produce enough electricity without the plants. But keeping the old plants open will cost at least $215 million per year.

That hefty price tag is falling upon the everyday electricity consumers through their utility bills. BGE is investing in new electrical transmission projects to improve Maryland’s electric infrastructure, but those projects come with an estimated cost of $1.5 billion. Additionally, PJM’s most recent capacity auction, where PJM ensures enough electricity for the state, saw capacity auction prices for electricity increase by almost 800% because of the power plant closures, the old infrastructure and its necessary updates, and the strain put on the power grid by new Maryland data centers across Frederick and Prince George’s counties.

While the problems behind the prices may seem understandable on the surface, they are complex and have given rise to a surge of discontent and dissention among politicians. The Maryland Office of People's Counsel filed a complaint alleging that the energy prices set by PJM are artificially inflated because they ignore the input of the two energy plants initially set for closure. PJM did not include those plants’ electricity production in its price setting, leading MPC and legislators to argue that the 800% increase should be much lower.

The power plants are sparking debate for other reasons, too. Brandon Shores and H.A. Wagner were initially scheduled for closure because of the Climate Solutions Now Act of 2022 (CSNA). This bill, labeled Senate Bill 528, requires Maryland to reduce statewide greenhouse gas emissions by 60% by 2031, and it requires Maryland to achieve net-zero emissions by 2045.

In December 2023, the Maryland Department of the Environment created the Maryland Climate Pollution Reduction Plan (MCPRP) to support the goals of CSNA. Governor Wes Moore then signed an executive order in June 2024 to intensify the goals of MCPRP and CSNA by reducing the zero-net emissions timeline to 2035.

This new order puts pressure on Brandon Shores and H.A. Wagner to close as soon as possible since they are not considered clean energy producers under Maryland’s climate laws. While the plants are set to stay open until 2028, some state representatives are frustrated with the situation because the bills are forcing Maryland to adapt to clean energy producers at a time when the state is already facing serious electricity issues. Republican Senators Justin Ready, Christopher West and William Folden submitted a new bill, SB332, to study and show the impacts of premature power plant retirement. Through this bill, they hope to create “energy reliability solutions that address the imminent energy reliability gap” and “balance the need between economic considerations and the state’s commitment to cleaner energy goals.”

Another frustration for District 31 Delegate Brian Chisholm and other representatives is a 2024 state law, Senate Bill 1 (SB1), which limits choices for energy suppliers for Maryland citizens. Lawmakers passed SB1 last year, increasing regulations on energy suppliers to combat misleading marketing tactics and ensure consumers are getting appropriate prices for utilities. Chisholm thinks that this bill negatively impacts the electricity market by reducing the number of energy suppliers that consumers can choose from.

“Instead of empowering customers, (the bill) restricts options and pushes providers out of the market,” he said. Now, Marylanders must pick from the lessening number of companies that remain in the state after the SB1 restrictions. House Republicans fear that the lack of supplier choice will force Marylanders into paying higher than market price for electricity. He proposed a SB1 amendment during the 2025 legislative session this winter, claiming that it would protect an individual’s energy choice, but the amendment did not pass.

Chisholm and his colleagues received welcome news at the end of July. U.S. Energy Secretary Chris Wright announced an emergency order allowing the Wagner station to operate during additional hours through October 26.

“Secretary Wright’s order keeps the lights on — but this must be the beginning, not the end, of reform,” Chisholm said.

While companies and politicians seek solutions, Marylanders’ bills continue to pile up. One way to lessen the load of energy costs is to look at the website of your energy provider and look for possible rebates, incentives and discounts. Also, visit and contact local nonprofit organizations for monetary help. Utility parent company Exelon donated $19 million into the Customer Relief Fund on June 12 to assist limited and middle-income Marylanders. The funds are currently being distributed through local nonprofits across the BGE, Pepco and Delmarva Power areas.

Anyone who needs government assistance to pay their utility costs should contact the Office of Home Energy Programs (OHEP) and Fuel Fund of Maryland. Marylanders who already receive government assistance with their utility bills can expect to see increased benefits this year. Moore announced that households already receiving between $130 to $575 in electric benefits per year can now expect to see between $250 and $1,000, and households receiving between $150 and $301 in gas benefits per year will now receive between $300 and $550 this year. Those who do not receive energy assistance can apply for it at www.marylandbenefits.gov.

Editor's Note: A previous version of this story attributed a complaint about energy prices to the wrong organization instead of the Maryland Office of People's Counsel. Also, the Brandon Shores transmission is expected to cost $1.5 billion, not $725 million as previously stated. We regret the errors.